The group said trading conditions in printing and publishing continued to be harsh and warned that trading in the second half would be below last years levels.

Significant contract losses have compounded the effects of tough competition and pressure on margins in commercial printing, which has been the groups principal area of weakness.

Wyndeham said the difficulties would hit its operating profit for the six months to 30 September to the tune of 1.6m. The group will also take a 300,000 exceptional charge for three bad debts resulting from customer receiverships. Operating profit before goodwill amortisation and exceptional costs, which it will report on 19 November, will be not less than 1.9m.

Chairman and chief executive Bryan Bedson was, however, confident that the potential for a pick-up in the magazine sector, combined with the actions the group is taking, would improve performance next year, although he admitted he was disappointed with current performance.

Wyndeham will provide more details about its actions on 19 November.